Investment Strategy
The Berenberg EM Bonds fund uses an active investment process to invest in attractive government and quasi-sovereign bonds from emerging markets that offer above-average return potential compared to traditional EUR fixed income investments. Using a combination of systematic and discretionary components in the investment process, the fund manager selects bonds from fundamentally convincing emerging markets or government-related companies for the portfolio. The investment strategy is underpinned by ongoing country risk management and active interest rate duration management. The foreign currency risk is generally hedged.
- Fundamental investment approach in government and quasi-sovereign bonds from Emerging Markets with active duration management
- Active positioning against a market benchmark
- Average duration is between 0 and 10 years
- Investment segments are primarily (quasi) government bonds in hard currencies
Learn more about our Berenberg Fixed Income investment philosophy
Fund data
| ISIN | DE000A1C2XK8 |
|---|---|
| WKN | A1C2XK |
| Inception date | 04.10.2010 |
| Issue price (19.11.2024) | 80.37 EUR |
| Redemption price (19.11.2024) | 78.03 EUR |
| Fund volume | 14.07 Mio. EUR |
| Share class volume | 4.17 Mio. EUR |
| Currency | EUR |
| Minimum investment | - |
| Asset Manager | Joh. Berenberg, Gossler & Co. KG |
| Management company | Universal-Investment-Gesellschaft mbH |
| Custodian | BNP Paribas S.A. Niederlassung Deutschland |
| Use of income | Distributing |
| End of financial year | 31.12. |
| Registration and Distribution | DE, AT |
| SFDR Classification (Sustainable Finance Disclosure Regulation) | Article 8 |
Costs
| Issue surcharge | Up to 3.00% |
|---|---|
| Flat-rate fee p.a. | 1.30% |
| Total Expense Ratio (TER) p.a. | 1.39% |
| Performance fee | none |
Chances and risks
| Chances | Risks |
|---|---|
| High return potential and current income from coupon collection | The fund is subject to general market risk |
| Attractive growth prospects in emerging markets | Increased price fluctuations and risk of loss or default possible when investing in emerging markets |
| Possible additional income through security analysis and active management | Increased price fluctuations and default risks possible with high-yield investments and investments with increased credit risks |
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Indexed performance
Performance in 12-month periods
Monthly performance
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | -1.22 | 3.82 | 1.19 | 1.72 | 3.53 | 0.35 | 0.09 | 1.01 | -2.96 | 2.24 | 1.16 | -0.67 | 10.54 |
| 2015 | 3.27 | 0.28 | -0.48 | -0.22 | -0.69 | -2.23 | 0.20 | -1.46 | -1.90 | 2.95 | -0.78 | -1.82 | -3.00 |
| 2016 | 0.71 | 1.18 | 3.21 | 1.44 | -0.53 | 3.86 | 1.89 | 1.44 | -0.23 | -1.37 | -4.89 | 1.29 | 7.98 |
| 2017 | 1.09 | 1.70 | 0.01 | 1.12 | 0.62 | -0.41 | 1.19 | 1.71 | -0.26 | 0.54 | 0.23 | 0.57 | 8.39 |
| 2018 | -0.44 | -2.34 | -0.40 | -2.20 | -1.11 | -3.72 | 2.77 | -3.57 | 1.66 | -2.88 | -2.11 | 0.19 | -13.45 |
| 2019 | 4.27 | 1.13 | 1.57 | -0.39 | -0.44 | 4.12 | 1.30 | 0.42 | -1.77 | -0.29 | -0.45 | 2.36 | 12.28 |
| 2020 | -0.02 | -1.61 | -10.49 | 1.83 | 5.84 | 3.32 | 3.45 | 0.03 | -2.42 | 1.32 | 4.61 | 2.35 | 7.41 |
| 2021 | -0.97 | -1.03 | -1.57 | 2.14 | 1.07 | -0.51 | -1.12 | 1.06 | -2.41 | 0.25 | -3.42 | 1.98 | -4.60 |
| 2022 | -1.76 | -3.10 | 3.26 | -5.16 | -0.33 | -9.04 | 1.42 | 1.02 | -6.33 | 3.03 | 8.49 | -1.01 | -10.26 |
| 2023 | 3.02 | -1.49 | -2.14 | -0.61 | 0.14 | 2.50 | 2.72 | -2.65 | -3.43 | -1.73 | 6.62 | 6.34 | 9.00 |
| 2024 | -1.89 | 0.19 | 1.86 | -2.14 | 1.31 | -0.44 | 2.00 | 2.35 | 1.57 | -1.69 | - | - | 2.58 |
Source: Berenberg, Management company
The charts and tables regarding performance shown here are based on own calculations according to the method developed by the German Investment Funds Association (BVI). They illustrate past performance. Future performance can deviate both positively and negatively from these calculations. Gross performance (BVI method) takes into account all charges at fund level (e.g. management fee), net performance plus the issue surcharge. Additional charges can arise for individual investors (e.g. custody account fees, commissions and other fees). Model calculation (net): An investor wants to purchase fund units for EUR 1,000 EUR. Considering a max issue surcharge of 3.00% he has to payEUR 30.00 for the purchase. Also, fees may be charged for the administration of the safe custody account, which will lower the performance. Past performance is not a reliable indicator of future performance.
Performance after issue surcharge
| 1 year | 11.73% |
|---|---|
| 3 years | -0.60% |
| 5 years | 5.12% |
| since inception | 38.22% |
| Max. Drawdown 5 years | -23.86% |
Source: Berenberg, Management company | State: 19 Nov 2024
Risk figures
| Volatility - 1 year | 6.19% |
|---|---|
| Volatility - 3 years | 9.05% |
| Sharpe Ratio - 3 years | -0.26 |
| Maximum Drawdown - since inception | -23.86% |
Currencies
Sectors
Countries
Asset classes
Top Holdings
Monthly market comment
In October, the market was influenced by the US election probability of candidate Trump. As a result, the US Dollar Index rose by 3.2%, and 10-year US yields increased by 50 basis points. The emerging market sovereign bond segment accordingly lost around 2%. The Spreads narrowed by ca. 23 basis points at the index level, with the high-yield segment offering further narrowing potential. The investment-grade segment, however, moved sideways in terms of spreads. The Berenberg EM Bonds performed comfortably better than the benchmark over the month, due to a tactical shortening of fund duration and maintaining an overweight position in the high-yield segment.
Portfolio Management
